Richemont achieves 22.4 billion euros in sales amidst geopolitical shifts

Compagnie Financière Richemont, the Swiss luxury goods group, delivered a solid performance for the financial year ended March 31, 2026, navigating fast-evolving geopolitical and macroeconomic conditions.

Group sales reached 22.42 billion euros (26.04 billion dollars), representing an increase of 11 percent at constant exchange rates and 5 percent at actual rates. This performance was underpinned by strong local demand and the benefits of a diversified regional footprint, with momentum continuing into the fourth quarter where sales rose by 13 percent at constant rates.

Operating profit for the year grew by 1 percent to 4.5 billion euros,while the operating margin stood at 20 percent, down by 90 basis points from 20.9 percent in the prior year. Profit for the year increased by 27 percent to 3.5 billion euros, supported by robust operating profit and the non-recurrence of a 1 billion euro Yoox Net-a-Porter (YNAP) write-down in discontinued operations during the prior year.

In his commentary, Richemont chairman Johann Rupert stated that uncertainty is likely to persist in the global market, particularly regarding developments in the Middle East. Rupert noted that the group will continue to rely on its long-term orientation, distinct brand identities, and disciplined operating approach to maintain the desirability of its brands and deliver sustainable value.

Americas and Middle East lead regional performance

All geographical regions contributed to the group's growth during the year. Performance in the Americas was particularly strong, with sales increasing by 8 percent at actual rates and 17 percent at constant exchange rates to 5.7 billion euros, led by sustained domestic demand throughout the year and double-digit growth across its Jewellery Maisons and Specialist Watchmakers.

Sales in the Middle East & Africa region rose by 6 percent at actual rates and 13 percent at constant rates to 2 billion euros. Double-digit growth in the first three quarters in the Middle East & Africa was disrupted in March by regional conflict, causing a 3 percent decline in fourth quarter sales at constant exchange rates.

In Europe, sales increased by 7 percent at actual rates and 9 percent at constant rates to 5.3 billion euros, driven by double-digit local demand and positive tourist spend, notably in Italy, Germany, and the UK. Asia Pacific returned to growth with sales up 1 percent at actual rates and 8 percent at constant rates to 7.2 billion euros, supported by strong performance in South Korea, Australia, and Singapore. Within Asia Pacific, combined sales in China, Hong Kong, and Macau grew by low single digits at constant rates. Japan posted a 2 percent sales increase at actual rates and 9 percent at constant rates to 2.2 billion euros, accelerating to a 28 percent increase in the fourth quarter due to robust local demand.

Retail channel expands direct-to-consumer reach

Sales grew across all distribution channels during the financial year. Retail sales from directly operated stores grew by 5 percent at actual rates and 12 percent at constant rates to 15.8 billion euros. Richemont expanded its retail footprint to 1,393 directly operated boutiques, which now account for 71 percent. Online retail sales grew by 2 percent at actual rates and 8 percent at constant exchange rates to 1.4 billion euros.

In total, direct-to-consumer (D2C) sales accounted for 77 percent of overall group sales, representing a slight increase over the previous year. Wholesale sales, which include franchise partners, multi-brand retail partners, agents, and royalty income, increased by 4 percent at actual rates and 9 percent at constant rates to 5.2 billion euros, representing 23 percent of total sales.

Jewellery Maisons drive profitability while watchmakers stabilize

The group's Jewellery Maisons, which include Buccellati, Cartier, Van Cleef & Arpels, and Vhernier, delivered an 8 percent increase in sales at actual rates and 14 percent at constant rates to 16.5 billion euros, with fourth-quarter sales accelerating by 16 percent at constant exchange rates.

The Specialist Watchmakers segment, comprising brands such as A. Lange & Söhne, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis, and Vacheron Constantin, recorded a 4 percent decline in sales at actual rates to 3.1 billion euros. At constant exchange rates, watchmaker sales rose by 1 percent, indicating stabilization after a challenging 24-month period for the global watch market. Performance improved in the second half of the year, particularly for A. Lange & Söhne, Jaeger-LeCoultre, and Vacheron Constantin.

Richemont also announced a private transaction on January 22, 2026, to divest full ownership of the specialist watchmaker Baume & Mercier to the Italian luxury group Damiani Group. The transaction is expected to close in the summer of 2026.

The group's Other business area, which includes Fashion & Accessories Maisons and the pre-loved watch platform Watchfinder & Co., reported a 2 percent decline in sales at actual rates to 2.7 billion euros, but an increase of 3 percent at constant rates. Performance was supported by strong momentum at Peter Millar and Alaïa, alongside encouraging sequential improvement at Montblanc.

The board of directors has proposed an ordinary dividend of 3.30 Swiss francs per 'A' share and ten 'B' shares, representing a 10% increase over the prior year. The board has also proposed an additional special dividend of 1.00 Swiss franc per 'A' share and ten 'B' shares, subject to shareholder approval at the annual general meeting scheduled for September 9, 2026.